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Blueprint officials planning for uncertainty in local economy, sharp decline in tax revenue

Officials are planning for an uncertain future for the economy of Tallahassee and Leon County, which have seen both downturns and small triumphs brought on by the global coronavirus pandemic.

They may be turning to Gov. Ron DeSantis' emergency declaration to supersede the Tallahassee-Leon County Interlocal Agreement's requirements dictating how sales tax dollars can be spent to ease some of the burden on local businesses and nonprofits.

The money was destined for the Business Recruitment Incentive Fund but if approved could be used to award to another 58 establishments that were eligible and applied through the Office of Economic Vitality before April 6.

FYI: To provide our community with important public safety information, the Tallahassee Democrat is making stories related to the coronavirus free to read. To support important local journalism like this, please consider becoming a digital subscriber.

The IA could also look at diverting money from the 2020 Capital Improvement Program to free up another $1.41 million from three 2020 projects not yet started to fund a second round of grants. They are the Lake Lafayette and St. Marks Regional parks and the Monroe-Adams corridor placemaking projects.

There is also $3.5 million set aside for the Airport Gateway Project, which also has not yet been started, but was to begin design and planning later this month.

The move could either help plan for an uncertain future and fund another grant program or cover the estimated $3.765 million shortfall in sales tax revenues going toward Blueprint 2020.

In an effort to limit exposure of COVID-19 to some of the most vulnerable segments of the population, the Tallahassee Senior Center of North Monroe St is closed to visitors until further notice. Ken Lanese

Hawks Rise Elementary School families lined Meadow Ridge Drive in Ox Bottom neighborhood for a "parade of smiles" that allowed the students to see their teachers while school has been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

The owners of Finnegan's Wake and Fifth and Thomas bars in Midtown made the decision Monday to shut down for the foreseeable future, canceling one of their biggest events of the year, an annual St. Patrick's Day party, and laying off around 27 employees. Tori Lynn Schneider/Tallahassee Democrat

Senior citizens wear protective equipment and practice social distancing waiting for Publix to open. Publix is one of many stores that have created special hours for senior citizens to shop during the COVID-19 pandemic. Ken Lanese

Hawks Rise Elementary School families lined Meadow Ridge Drive in Ox Bottom neighborhood for a "parade of smiles" that allowed the students to see their teachers while school has been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Hawks Rise Elementary School families lined Meadow Ridge Drive in Ox Bottom neighborhood for a "parade of smiles" that allowed the students to see their teachers while school has been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Hawks Rise Elementary School families lined Meadow Ridge Drive in Ox Bottom neighborhood for a "parade of smiles" that allowed the students to see their teachers while school has been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Peggy Ross, 63, was the first to get tested for coronavirus at Tallahassee's first drive-through testing site which opened at Northwood Centre Wednesday, March 18, 2020. Tori Lynn Schneider/Tallahassee Democrat

Hawks Rise Elementary School families lined Meadow Ridge Drive in Ox Bottom neighborhood for a "parade of smiles" that allowed the students to see their teachers while school has been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Hawks Rise Elementary School families lined Meadow Ridge Drive in Ox Bottom neighborhood for a "parade of smiles" that allowed the students to see their teachers while school has been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Hawks Rise Elementary School families lined Meadow Ridge Drive in Ox Bottom neighborhood for a "parade of smiles" that allowed the students to see their teachers while school has been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Hawks Rise Elementary School families lined Meadow Ridge Drive in Ox Bottom neighborhood for a "parade of smiles" that allowed the students to see their teachers while school has been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Around 45 Hawks Rise Elementary School teachers participated in a "parade of smiles" on Meadow Ridge Drive, allowing them to see their students from a safe distance as schools have been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Around 45 Hawks Rise Elementary School teachers participated in a "parade of smiles" on Meadow Ridge Drive, allowing them to see their students from a safe distance as schools have been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

aAround 45 Hawks Rise Elementary School teachers participated in a "parade of smiles" on Meadow Ridge Drive, allowing them to see their students from a safe distance as schools have been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Around 45 Hawks Rise Elementary School teachers participated in a "parade of smiles" on Meadow Ridge Drive, allowing them to see their students from a safe distance as schools have been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Around 45 Hawks Rise Elementary School teachers participated in a "parade of smiles" on Meadow Ridge Drive, allowing them to see their students from a safe distance as schools have been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Around 45 Hawks Rise Elementary School teachers participated in a "parade of smiles" on Meadow Ridge Drive, allowing them to see their students from a safe distance as schools have been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Around 45 Hawks Rise Elementary School teachers participated in a "parade of smiles" on Meadow Ridge Drive, allowing them to see their students from a safe distance as schools have been closed until April 15 due to the coronavirus pandemic Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Alecia Jimenez helps her daughter Alexa, a 5-year-old kindergartner, hold up her sign that reads "I miss you Mrs. Campbell" as they wait for the Hawks Rise Elementary School "parade of smiles" on Meadow Ridge Drive to begin Monday, March 23, 2020. Tori Lynn Schneider/Tallahassee Democrat

Florida State University students mill about campus Thursday, March 12, 2020, one day after it was announced that beginning March 23, after spring break, classes would be moved online for at least two weeks in response to concerns about the spread of coronavirus. Tori Lynn Schneider/Tallahassee Democrat

A numbering system is used to help Second Harvest of the Big Bend count how many supplemental food kits they are distributing at Godby High School Tuesday, March 24, 2020. Tori Lynn Schneider/Tallahassee Democrat

Volunteers from First Presbyterian Church fill out the paperwork necessary for Second Harvest of the Big Bend to give out food to those who visited Godby High School Tuesday, March 24, 2020. Tori Lynn Schneider/Tallahassee Democrat

Second Harvest of the Big Bend CEO Monique Ellsworth talks with volunteers from First Presbyterian Church as they all work together to distribute supplemental food kits at Godby High School Tuesday, March 24, 2020. Tori Lynn Schneider/Tallahassee Democrat

Second Harvest of the Big Bend CEO Monique Ellsworth goes through what is inside each of the 500 supplemental food kits being distributed by Second Harvest of the Big Bend at Godby High School Tuesday, March 24, 2020. Tori Lynn Schneider/Tallahassee Democrat

The St. John Episcopal Church choir quartet practiced social distancing as they sang during a Facebook Live streamed 10 a.m. service in the chapel Sunday, March 22, 2020. Tori Lynn Schneider/Tallahassee Democrat, Tori Lynn Schneider/Tallahassee Democrat

Volunteer parishioners Jeff Couch, left, and Charlie Belvin work together to set up a Facebook Live stream of 10 a.m. service in the chapel of St. John's Episcopal Church Sunday, March 22, 2020. Tori Lynn Schneider/Tallahassee Democrat, Tori Lynn Schneider/Tallahassee Democrat

The doors to St. John's Episcopal Church which typically welcome in parishioners on Sunday mornings, remained shut Sunday, March 22, 2020, as the church moved to online streaming of services amid the coronavirus pandemic. Tori Lynn Schneider/Tallahassee Democrat, Tori Lynn Schneider/Tallahassee Democrat

Volunteer parishioners Jeff Couch, left and Charlie Belvin, right, work with St. John's Episcopal Church Director of Communications Mandy Schnittker to set up the Facebook Live stream of 10 a.m. service inside the church's chapel Sunday, March 22, 2020. Tori Lynn Schneider/Tallahassee Democrat, Tori Lynn Schneider/Tallahassee Democrat

Rev. Dave Killeen welcomes those tuning in to the St. John Episcopal Church Facebook Live stream of 10 a.m. service inside the church's chapel Sunday, March 22, 2020. Tori Lynn Schneider/Tallahassee Democrat, Tori Lynn Schneider/Tallahassee Democrat

The sanctuary was quiet inside St. John's Episcopal Church Sunday, March 22, 2020, as services moved to online streaming during the coronavirus pandemic. Tori Lynn Schneider/Tallahassee Democrat, Tori Lynn Schneider/Tallahassee Democrat

The doors to St. John's Episcopal Church which typically welcome in parishioners on Sunday mornings, remained shut Sunday, March 22, 2020, as the church moved to online streaming of services amid the coronavirus pandemic. Tori Lynn Schneider/Tallahassee Democrat, Tori Lynn Schneider/Tallahassee Democrat

The sanctuary was quiet inside St. John's Episcopal Church Sunday, March 22, 2020, as services moved to online streaming during the coronavirus pandemic. Tori Lynn Schneider/Tallahassee Democrat, Tori Lynn Schneider/Tallahassee Democrat

Executive Director of Clinical Operations for Tallahassee Memorial HealthCare Chad Moore shows the swabs used in coronavirus testing during a news conference held to give an update on the Northwood Centre drive-through coronavirus testing site Thursday, March 19, 2020. Tori Lynn Schneider/Tallahassee Democrat

Darshana Patel, a compounding technician at WellPack Pharmacy located on Capital Circle Northeast, makes sanitizer that will be distributed for free to the community beginning Monday, March 23, 2020, while supplies last. Alicia Devine/Tallahassee Democrat

Darshana Patel, a compounding technician at WellPack Pharmacy located on Capital Circle Northeast, makes sanitizer that will be distributed for free to the community beginning Monday, March 23, 2020, while supplies last. Alicia Devine/Tallahassee Democrat

Darshana Patel, a compounding technician at WellPack Pharmacy located on Capital Circle Northeast, makes sanitizer that will be distributed for free to the community beginning Monday, March 23, 2020, while supplies last. Alicia Devine/Tallahassee Democrat

Darshana Patel, a compounding technician at WellPack Pharmacy located on Capital Circle Northeast, makes sanitizer that will be distributed for free to the community beginning Monday, March 23, 2020, while supplies last. Alicia Devine/Tallahassee Democrat

Darshana Patel, a compounding technician at WellPack Pharmacy located on Capital Circle Northeast, makes sanitizer that will be distributed for free to the community beginning Monday, March 23, 2020, while supplies last. Alicia Devine/Tallahassee Democrat

Darshana Patel, a compounding technician at WellPack Pharmacy located on Capital Circle Northeast, makes sanitizer that will be distributed for free to the community beginning Monday, March 23, 2020, while supplies last. Alicia Devine/Tallahassee Democrat

Peggy Ross, 63, was the first to get tested for coronavirus at Tallahassee's first drive-through testing site which opened at Northwood Centre Wednesday, March 18, 2020. Tori Lynn Schneider/Tallahassee Democrat

Peggy Ross, 63, was the first to get tested for coronavirus at Tallahassee's first drive-through testing site which opened at Northwood Centre Wednesday, March 18, 2020. Tori Lynn Schneider/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Seven Fennec Foxes are currently living at the Tallahassee Museum, Wednesday, March 18, 2020. Twice a year, exotic guest animals are brought in to provide the community an opportunity to learn about wildlife. Alicia Devine/Tallahassee Democrat

Jim Roche, left, and Alexa Kleinbard wear masks while voting during the Florida primary election, Tuesday, March 17, 2020. Both are over 65-years-old and felt it was important to exercise their right to vote while also being cautious about the coronavirus. Alicia Devine/Tallahassee Democrat

Commissioners will also revisit a call from their last emergency meeting three weeks ago to help the hospitality industry and locate funding to help local nonprofits.

Restaurants, hospitality workers and the service industry account for 20,000 jobs, or 12% of the workforce in Leon County. They've been hit the hardest after statewide closures of eatery dining rooms, social distancing and some not being declared essential businesses.

They encompass nearly half of the grants awarded by OEV and could be part of a more targeted approach to providing further relief until state and federal funding become available.

Meetings between government officials and service industry representatives found that because the industry depends on direct contact with customers, along with uncertainty in the return of the college population, football season, graduation and other academic-connected events, the summer doldrums could prove troubling in keeping businesses open.

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A long way from OK?

An expected turnaround in revenues could come by this fall but Spring 2021 is more likely, staff wrote in the agenda item.

At the last IA meeting on March 25, Tallahassee Mayor John Dailey asked that close to $1 million that was left over from the St. Marks Headwater Blueprint project be made available for individuals and nonprofits.

He was rebuffed by Department of PLACE Director Ben Pingree who said that, based on the voter referendum, project dollars couldn't be used for such a purpose.

An analysis by the Blueprint attorney found that money collected in Extended 2000 Surtax proceeds and dedicated to infrastructure projects cannot be used for economic development.

But not covered by state law is what can be done with the over $920,000 of leftover sales tax dollars from the St. Marks project.

The St. Marks Lighthouse.(Photo: Joe Rondone)

But under DeSantis’ executive order, which in part waived the formalities required for appropriation or expenditures of public funds, 2020 tax money can be diverted to economic development to support local businesses during the state of emergency, the legal analysis found

There are 2,400 nonprofits in the county that employ a total of 12,000 people. Blueprint staff noted that there have been 10 federal programs of tax modifications established that could benefit individuals and nonprofits.

City Commissioner Jeremy Matlow gained unanimous support at Wednesday’s City Commission meeting to direct City Manager Reese Goad to identify funding along with county staff to help fund primarily utility relief.

Dailey said the city was “hamstrung” as an operator of a municipal utility to provide money from the utility budget for relief, as noted in budgeting documents, and such money would need to come from OEV.

Goad added that there were two paths forward to providing utility assistance: Either across-the-board rate relief, which could total millions of dollars more than a targeted effort by OEV, or tapping into a joint city-county solution.

“The dollars within the enterprise have to be used across the board,” Goad told commissioners. “If you want to do that, you need an outside funding source.”

Contact Karl Etters at ketters@tallahassee.com and follow him @KarlEtters on Twitter.

What happens next

The intergovernmental agency, consisting of all 12 county and city commissioners, meets by video conference at 1 p.m. Wednesday.

Federal funding also is being used to conduct more coronavirus testing, telehealth and the acquisition of personal protective equipment. The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act includes $1.32 billion in emergency funding to Federally Qualified Health Centers and expands the authority of FQHCs to utilize telehealth. The emergency funding provisioned in the CARES Act have not yet been distributed.